Advocates: Heating assistance programs lag behind costs

December 08, 2006

INDIANAPOLIS (AP) -- Thousands of low-income Indiana families face another cash-strapped, chilly winter despite heating assistance programs aimed at keeping their homes warm until next spring, consumer advocates say. Although state and federal money helped heat about 158,000 Indiana homes last winter, most low-income Hoosiers haven't benefited from that assistance, said Dave Menzer, utility campaign coordinator for the consumer watchdog group Citizens Action Coalition. He said about 60 percent of the roughly 500,000 low-income households eligible for energy assistance do not take part in those programs -- often because they are unaware such help exists. Instead, Menzer said they go it alone, often taking drastic steps to stave off the cold. "They're cutting back on medication, living in one room of their house with plastic holding back the cold. They're taking in many cases extreme if not dangerous measures, such as using space heaters that can cause fires," he said Thursday. With winter cold now settling across Indiana, state and private organizations have set a record $70 million aside to help needy Hoosiers pay their heating bills this winter. And Gov. Mitch Daniels is allowing for the second straight year families of four who make $30,000 a year or less eligible for energy assistance. That is 150 percent of the federal poverty rate, instead of the 125 percent the state previously allowed. Last winter, the state's Energy Assistance Program served 158,881 households -- up from 136,601 the previous season, with an average household benefit of $334.50. Although such programs help many families, they have failed to keep pace with the growing cost of winter heating bills, said Vickie Allen-Beeson of the Indiana Community Action Association. She said studies have shown that 25 percent of the income of working poor families goes toward their energy needs, an amount that taxes their ability to provide for their families. "That's just unaffordable," Allen-Beeson said. A November report prepared for the Coalition to Keep Indiana Warm that examined the billing practices of the state's natural gas and utilities found that from July 2005 to June 2006, those utilities disconnected 21,154 low-income accounts for nonpayment. Allen-Beeson, who co-chairs that panel of utility representatives and community advocates, said heating assistance efforts have placed growing burdens on local communities. "It saps so many resources out of the community -- churches are asked for help, trustees are asked for help. It takes a lot of assistance to keep families' heat on," she said. After last winter's record-high energy prices socked many consumers with huge heating bills, natural gas prices are expected to be slightly lower through this winter. But Menzer notes that bills are likely to rise for those who heat with oil or electricity and an unseasonably cold winter could boost all Hoosiers' heating bills. "The fact is we're looking at what will probably be the second- or third-highest heating costs in U.S. history this winter," he said. On Wednesday, the Indiana Utility Regulatory Commission extended through May the heating-assistance programs operated by Vectren Corp., Northern Indiana Public Service Co. and Citizens Gas, said commission spokeswoman Mary Beth Fisher.